Trading Profitability
The profitability zone is above the break-even line where profit factor exceeds one. Trading profitability depends on the mathematical combination of win rate and risk-to-reward ratio. Profitability is described as a matter of basic mathem…
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The profitability zone is above the break-even line where profit factor exceeds one. Trading profitability depends on the mathematical combination of win rate and risk-to-reward ratio. Profitability is described as a matter of basic mathematics rather than a preference for one metric. Positive expectancy occurs when win rate multiplied by average win size exceeds loss rate multiplied by average loss size.